Smartsheet Stock Jumps 13% as Bottom-Line Trends Impress

Dow Jones06-06

Smartsheet Inc. delivered an upbeat earnings outlook, sending shares of the software maker 13% higher in premarket trading on Thursday.

For the full fiscal year, Smartsheet models revenue of $1.116 billion to $1.121 billion, while the FactSet consensus was for $1.116 billion. The collaboration-software company’s prior full-year outlook was for $1.113 billion to $1.118 billion in revenue.

In terms of adjusted earnings per share, Smartsheet is now looking for $1.22 to $1.29 over the course of the full fiscal year, whereas its prior forecast called for $1.06 to $1.13. Analysts had been modeling $1.11.  

The company projects total second-quarter revenue of $273 million to $275 million, with the midpoint of that — $274 million — matching the consensus view. Smartsheet’s bottom-line forecast of 28 cents to 29 cents in adjusted earnings per share exceeded the 25-cent consensus projection.

“We continue to see significant demand from our enterprise customers and now have 72 customers with annualized recurring revenue over $1 million, an increase of 50% year over year,” Chief Executive Mark Mader said in a release.

He said that “the combination of new product innovations, the upcoming launch of our modern pricing and packaging model and a reinvigorated go-to-market strategy” sets Smartsheet up for “long-term, durable growth.”

In the fiscal first quarter, Smartsheet notched a 20% revenue increase to $263 million, while analysts were looking for $258 million.

The company’s net loss narrowed to $8.9 million, or 6 cents a share, from a $29.9 million loss, equating to 23 cents a share, seen a year before.

On an adjusted basis, Smartsheet earned 32 cents a share, while analysts had been anticipating 27 cents.

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